Go to the Barrick website,..they have their main hedging program detailed out so that anyone can understand it. Every single dope who has argued against Barrick hedging program on SI in the past has not bothered to read the info on the website, or the same detailed in their financial statements. Barrick has been telling the world the nuts and bolts of this hedging program for at least 4 years in their financial statements, and recently went to great pains in detailing the program on their website.
Anyone discussing this program without reading this stuff first, is wasting their time (and mine) discussing the subject with no understanding of what they speak (or type).
The type of hedging that Ashanti and Sons of G did bears no resemblance whatsoever to Barrick's program.
As far as the lawsuit, this is absolute silliness. The central banks around the world lent out their gold to anyone who wanted to lease it,...how can you sue someone for taking advantage of that? If you sue one leasee, you must sue everyone who did it, and there are hundreds on both sides of the agreements. The fact that the lawsuit singles out Barrick and one of its bullion banks instead of everyone who participated will be one of the downfalls of the lawsuit. Last time I looked selling or leasing off your country's bullion is not a "war crime" or an "act of terrorism" or something punishable in an international court (a country's citizens decide and they are sovereign decisions). If so, anyone who sold an oz of gold should be thrown in jail (no doubt the average goldbug thinks there should be a law on this (gggggggggg)).
There are other reasons for Barricks slide from the highest valued gold company in the world, but they have more to do with the declining production and increasing cash costs of Barrick, and the fact that many of the other producers improved their balance sheets and income statements with share issues or M&A activities hence allowing them to be rewarded with increasing multiples to cashflow. For instance Newmont is a much improved company since they merged with Franco and Normandy,...your nose should have told you that Newmont was stinking the place up a bit pre merger, or your nose should be taken in for an overhaul (gggggggggg) |
